An exploratory study on supplier acceptance of and engagement in a national tax lottery designed to improve tax compliance

Anculien Schoeman

South African Journal of Accounting Research, 2025, vol. 39, issue 2, 128-148

Abstract: PurposeTo determine business owners’ perceptions of and support for a national tax lottery system in South Africa.MotivationTax compliance in developing countries is a challenge for governments, which depend on tax revenue to provide public goods and services. A tax lottery system has been recommended for South Africa, where customers would demand receipts for purchases that serve as lottery tickets and create paper trails that would expose tax non-compliant businesses. Literature indicates that small businesses find the process burdensome, costly, and detrimental to competitiveness and growth, particularly when customers are lost to larger businesses that are better equipped to routinely supply receipts.DesignAn exploratory approach, using an online survey of suppliers to gauge their perceptions of a South African tax lottery system was followed.FindingsOf the respondent, 51% expressed support for a tax lottery system, and thus, at an exploratory level, business owners in South Africa do not seem to support a tax lottery. This is an important finding, since suppliers play an integral role in the implementation of a tax lottery system. Further research should be conducted to determine the views of a more representative sample of suppliers, to determine whether they would play their part in administering such a system. Suppliers’ biggest concern was government corruption in implementing such a system.ContributionThis study contributes to the body of knowledge on tax lotteries, particularly from a developing country perspective; furthermore, few empirical studies take the supplier perspective and acceptance of a tax lottery into account.

Date: 2025
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DOI: 10.1080/10291954.2024.2393913

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